PEI PNP Business

Prince Edward Island’s Business Impact category includes an immigration route reserved for entrepreneurs, known as the Work Permit Stream.

Prince Edward Island Provincial Nominee Program (PEI PNP)The Work Permit Stream is for individuals interested in owning and operating a business on the island. Approved business candidates receive a temporary work permit fromImmigration, Refugees and Citizenship Canada (IRCC)to establish their business, and, if the conditions of the Performance Agreement signed with the Government of Prince Edward Island are met, the business candidate may apply for Canadian permanent residence.

The Work Permit Stream operates on anExpression of Interest (EOI) system, a points-based system for assessing prospective candidates before invitations to apply to the PEI PNP Work Permit Stream are issued.

Requirements for candidates

To be considered eligible under the Work Permit Stream, an individual must:

• Have a minimum personal net worth of CAD 600,000, accumulated from lawful and legitimate sources;
• Have a minimum level of education of secondary school or equivalent;
• Have transferable management skills and previous work experience or business ownership;
• Be aged between 21 and 59 at the time of applying;
• Meet the minimum language requirement equivalent to Canadian Language Benchmark (CLB) level 4;
• Intend to live and work in PEI; and
• Provide active and ongoing management of the proposed business from within PEI.

Requirements for the business

The Business Impact category considers only applications involving a business that generates revenue through the independent sale of goods or services to third parties. This excludes businesses whose principal purpose is to earn returns from investment, real estate activity, lending investment companies and other passive investments.

Entrepreneur candidates wishing to purchase an existing business must obtain prior approval from the PEI Office of Immigration to ensure the business meets the programme criteria.

Minimum requirements

To be considered an eligible business under the Business Impact category, the business must:

• Be a for-profit company incorporated under PEI’s Companies Act or the Canada Business Corporations Act;
• Operate with the principal purpose of earning profit from operating income through the provision of products/services;
• Be in good standing with the province in respect of all debts and obligations;
• Have been an established commercial operation for the 12 months preceding the intended business start date, with confirmation provided in the Purchase and Sale Agreement;
• Maintain its head office in PEI;
• Maintain a ‘permanent establishment’ in PEI as defined in section 400(2) of the Income Tax Act;
• Be liable for income tax on taxable income;
• Have good potential to sustain lasting commercial viability;
• Agree to take part in the PEI PNP evaluation process, which requires the business to report to the Office of Immigration annually for up to 5 years;
• Have the potential to generate significant economic benefit for PEI;
• Meet all terms listed in the Business Performance Agreement.

Ineligible businesses

Applications from the following types of business will not be considered under the Business Impact category:

• Any business, or member of a group of affiliated companies/partnerships, that has received investment through the Provincial Nominee Program within the past 48 months.
• Bed and breakfasts, hobby farms and home-based businesses.
• If the business is an Inn or Boutique Hotel, the following conditions must be met:
  • Have at least 5 rental units, each with at least a three-piece bathroom;
  • Have revenue of at least CAD 100,000 in the most recent operating year, supported by financial statements or tax returns;
  • Have eligible operating expenses of at least CAD 75,000 in the most recent operating year, supported by financial statements or tax returns.
• Payday lending, cheque cashing, currency exchange and cash machines.
• Pawnbrokers.
• Sale of second-hand goods (except collectibles, or where the business provides a value-added service such as repair, refurbishment or recycling).
• Construction/renovation businesses must meet the following conditions:
  • Have at least 3 arm’s-length employees working full time for at least 6 months of the year, meeting the terms and conditions of the Business Performance Agreement;
  • Lease or build premises outside the place of residence in which to conduct the business;
  • Demonstrate relevant education or a minimum of 5 years’ experience in the proposed business.
• Real estate development, unless deemed to bring significant economic benefit to the PEI economy.
• Insurance or business brokerage.
• Franchise operations, unless approved in advance by the PEI PNP Office.
• Start-up businesses in which the candidate owns less than 100% of the business, unless deemed to bring significant economic benefit to the PEI economy.
• Businesses established solely to gain access to permanent residence through immigration.
• Professional practices.
• Financial services.
• Consultancy services.
• Any entity unable to issue shares.
• An entity described in IRPA Regulation 87(6)(a).
• Any business that damages the reputation of the programme or the PEI Government.

Work Permit Stream application process

STEP 1:Before submitting an Expression of Interest (EOI) profile, the PEI PNP encourages prospective business candidates to review the Work Permit Stream eligibility criteria to establish whether they meet the programme requirements.

STEP 2:Create an EOI profile and provide a valid email address together with verifiable identifying information. The profile is valid for 6 months. Note that an EOI is not an application to the Work Permit Stream, but an expression of interest in being considered as a prospective candidate for the Business Impact Category — Work Permit Stream.

STEP 3:Candidates invited to apply to the Work Permit Stream are removed from the EOI selection pool. Invited candidates have up to 60 days from the date of the invitation letter to submit a complete application package to the PEI PNP.

STEP 4:When preparing the application, invited candidates must complete all relevant forms and gather the necessary supporting documents. The PEI Office of Immigration may request further supporting documents at any point during processing.

STEP 5:The complete application package and the application fee must be submitted to the PEI Office of Immigration within 60 days of receiving the invitation to apply. The package may be submitted in person, by courier or by post within 60 days of receiving the invitation.

STEP 6:If the application is approved, the PEI Office of Immigration invites the candidate to attend an in-person interview. At the interview, the candidate must be prepared to discuss the business proposal in detail and demonstrate a thorough understanding of the business plan. Consult PEI’s application guide for the list of forms and documents that must be completed and presented at the interview.

STEP 7:Submit the signed Performance Agreement setting out the conditions for establishing the business.

STEP 8:On receiving a letter of support from the PEI Government, the candidate may apply to IRCC for a work permit.

STEP 9:If the work permit application is approved, the candidate must report in person to the PEI Office of Immigration within 30 days of arriving in Canada, in accordance with the signed agreement.

STEP 10:After arriving in PEI, the business candidate is assigned a Settlement Support Officer, who provides assistance throughout the establishment and operation of the business. The Settlement Support Officer keeps in regular contact with the business candidate to receive progress reports on business activity. Business candidates who meet the conditions of the Performance Agreement and the nomination requirements are issued a nomination by the PEI Government. They may then apply to IRCC for Canadian permanent residence.

Performance agreement and nomination requirements

The Performance Agreement sets out the terms a Work Permit Stream candidate must meet in order to receive a provincial nomination for Canadian permanent residence from the PEI Government.

To receive a PEI nomination under the Work Permit Stream and meet the requirements of the Performance Agreement, a candidate must:

• Maintain residence on the island while operating the business, and be physically present in PEI for a minimum of 274 days in the year;
  • Note: if dependent children are studying at a post-secondary institution outside PEI, the PEI PNP does not require the children to be physically present in PEI during that period.
• Invest a minimum of CAD 150,000 in the business within 12 months of arriving in PEI;
• Operate the business continuously for a minimum of 12 months;
• Provide active and ongoing management of the business from within PEI;
• Provide prepared financial statements recording eligible operating expenses of at least CAD 75,000;
• Meet all other terms and conditions of the signed Performance Agreement.

The business plan

Business candidates must be prepared to discuss their business proposal and plan at an in-person interview at the PEI Office of Immigration. The PEI business plan must cover the following:

• An overview of the company;
• The products/services offered, an industry analysis and the competitive landscape;
• The marketing plan;
• The management team and staffing;
• A description of the candidate’s role in the business;
• How the candidate’s experience relates to the business;
• How the business will deliver significant economic impact for the province;
• Historical financial statements (if purchasing a business); and
• Financial forecasts prepared by a qualified accountant (CPA) (if not purchasing a business).